Australia's Economy Stuck in Low Gear

Record-Low Rates Are Yet to Spark a Broad Recovery Down Under

SYDNEY—Australia's economy grew less than expected in the third quarter, sending the Australian dollar sharply lower and highlighting how record-low interest rates are yet to fire a broad recovery.

The resource-rich economy expanded by 0.6% in the third quarter from the second, and by 2.3% from a year earlier, a government report showed Wednesday. That was below economists' expectations of 0.8% quarterly growth and 2.6% on a...